The stock market embraced the weakest one-week performance since the financial crisis last week on the back of growing concerns of the continued spread of the coronavirus across the globe. Despite the risk off-moves, gold was lower by more than 3% last week, which is historically unusual during these types of movements. There are a few potential reasons for the weakness.
- First, gold is the strongest performing major asset class this year; the only one in positive territory at this point, up over 5%. This may have led to some profit taking